City firms shrug off Brexit impact

The financial services industry has not been hit as hard by Brexit as many expected, with warnings of job losses and staff relocations not having yet materialised, a new report from EY finds.

Research by the consultancy giant, which tracked every public statement made by 232 different financial firms, found that the repercussions of Brexit has not been as bad as initially feared, reports City AM.

The report found that one in five of the largest investment banks have warned of a negative impact of Brexit, while a quarter made a commitment to stay in the UK.

The report stated: “The immediate impact of the referendum has not been as stark as many initially feared.”

Looking to insurance companies, 40 per cent of the UK’s leading firms said Brexit wouldn’t impact their business, while 10 per cent said it could lead to positive moves and new opportunities.

An area of concern raised in the report was the City’s passporting rights, with a quarter of the largest investment banks saying they would cut staff if they did not gain access to the Single Market.

Omar Ali, UK financial services leader at EY, says: “It is reassuring to see that, two months after the vote, companies across the sector – particularly within the insurance community – seem broadly confident in the ability of their business to weather the initial storm.

“Indeed, the industry has responded with pragmatism, ingenuity, and day-to-day focus on serving its customers and some are beginning to highlight areas of opportunity.”